It’s not all doom and gloom in Brisbane’s property market following the announcement by Leighton Properties and Devine Limited that King George Central at 145 Ann Street had received development approval as well as strong tenant interest.
The joint venture project, consisting of 37,500m² of A-grade office space, is set to commence development this year.
A number of tenants, including Corporate Executive Offices and Preschool Services Australia Pty Ltd, have already pre-committed to the project, with others advanced in the negotiations – taking the total of pre-commitments to over 5,000m2.
Preschool Services Australia Pty Ltd Director, Karen Williams, said her decision to lease the 890m2 childcare tenancy on level two of King George Central was straightforward, considering the high demand for childcare facilities within the city.
“Increasingly, parents are seeking to enrol their children in city based childcare centres,” Ms Williams said.
“Being able to drop off and pick up their children close by or even within their place of employment eases the stress of the day for a lot of working parents. Being in the heart of city and so close to Central Railway Station and King George Square Bus Station, King George Central is ideally located to reduce that stress.”
Michael Sayers, Director of Corporate Executive Offices, Australia’s largest privately owned serviced office provider, said the determining factor in pre-committing to 3,217m2 across levels 26 to 28 inclusive was the transport connectivity advantages that King George Central will provide.
“By locating in a contemporary, well positioned building, our organisation will be better placed to provide our occupants with flexible transport options - something that I believe is imperative in attracting and retaining staff.” he said.
Mr Sayers also said “Our commitment to the exciting King George Central project further confirms Corporate Executive Offices’ belief in the strength of the Brisbane CBD market.”
According to Andrew Borger, Leighton Properties’ Executive Director and Queensland State Manager, interest is being driven by the quality of the development and value for money - something which is increasingly important to corporate occupiers in the current climate.
“King George Central is one of the few projects today that is committed to providing superior quality facilities while delivering significant energy efficiencies and environmental benefits,” Mr Borger said.
“The project sits at the nexus of the ‘Golden Triangle’ and the emerging North Quarter Precinct, well established as Brisbane CBD’s legal hub. It’s a place that will become the true heart of the CBD once the King George Square revitalisation is complete, with Queen Street Mall as its spine.” he said.
David Devine, Founder and Managing Director of Devine Limited, said tenants are often attracted to lease brand new prime office space as it is cheaper rent than most existing prime CBD buildings.
“What is so appealing to prospective tenants is that these benefits are available at exceptionally competitive rates, with incentives available to assist with the relocation and fit-out of their new premises – an important factor considering the current economic climate,” he said.
“What tenants may not be fully aware of is that the various benefits of new projects are being delivered at a level approximately 25% lower than the average prime rent being paid today in existing prime buildings, as a recent Jones Lang LaSalle study has shown.”
Leighton Properties’ development end-values total almost $5 billion. Leighton Properties is an award-winning Australian property development and project management company specialising in quality mixed-use projects. With more than 36 years experience in the industry, Leighton Properties is a wholly-owned subsidiary of Leighton Holdings Limited, Australia’s largest contracting and development group.
Devine has a current national pipeline of land developments and projects which will have an end value exceeding $3 billion. Devine’s operations include housing, land development, medium density and high-rise residential units, hotels, commercial and retail developments, an in-house construction division, and property and body corporate management.
Leasing agents for King George Central are DTZ Australia and Jones Lang LaSalle.
For more information, please contact:
Andrew Borger
Executive Director and State Manager, Queensland
Leighton Properties Pty Limited
T: (07) 3370 4700
E: andrew.borger@lppl.com.au
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